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Budget Expectation: Why Materials, Data and Governance Will Shape Manufacturing
Industry News- Jan 28,26
India’s manufacturing growth hinges on digitalisation, material self-reliance, and policy clarity to strengthen resilience and global competitiveness, says S Sunil Kumar, Country President, Henkel Adhesives Technologies India, while sharing his views on the manufacturing industry ahead of the budget.
India’s manufacturing advantage is being redefined, driven by digitally integrated and automation-led production systems built on data, intelligence, and scale. Policy priorities are increasingly focused on unlocking Tier-2 and Tier-3 manufacturing corridors to expand domestic market access, mobilise available labour pools, and accelerate job creation. With India’s emphasis on “Responsible Growth,” sustainability has moved into the mainstream and now functions as market?access infrastructure. It is shaping domestic and export competitiveness as well as influencing institutional capital flows. In this environment, trust, compliance, digital transparency, and predictable governance are emerging as core competitive differentiators, supported by national manufacturing platforms that integrate digital production systems, AI adoption engines, and structured skilling pathways.
The success of this manufacturing vision also depends on the physical foundations of production, particularly advanced materials and resilient raw?material supply chains. India’s next phase of manufacturing competitiveness will be shaped not only by scale and cost efficiencies but also by its ability to secure critical inputs for high?performance manufacturing. Across multiple sectors such as automotive, electronics, packaging, consumer goods, and industrial manufacturing, materials including high-performance adhesives, sealants and functional coatings have become essential to ensure product performance, safety, sustainability, and lifecycle efficiency. Several key raw materials for specialty chemicals still present significant opportunities for domestic capacity expansion and localization. Current import dependence on a limited set of sourcing geographies underscores a clear opportunity to strengthen supply-chain resilience. Leveraging this opportunity will help to scale and bring cost effectiveness. It will also enhance operational stability, competitiveness, and long-term manufacturing confidence.
Targeted policy support backed by incentives to localise critical chemical intermediates, scale domestic production, enable technology transfer, advance application?led R&D and deepen value addition, can significantly strengthen manufacturing resilience. For advanced material inputs, reducing import dependence is essential. It is not only a supply?side requirement but also a strategic lever to elevate India’s position in the global manufacturing value chain. It reinforces India’s emergence as a competitive and self?reliant hub for high?performance materials and downstream manufacturing. The Union Budget 2026 presents a timely opportunity to strengthen this integrated approach by aligning digital manufacturing ambitions with raw?material self?reliance and long?term policy clarity.
Manufacturing Policy
Union Budget 2026
Digital Manufacturing
Supply Chain Resilience
Specialty Chemicals
Raw Material Localisation
Sustainability
Industrial Automation
Advanced Materials
S Sunil Kumar
Henkel Adhesives
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